At 31 March 2014, a company had oil in hand to be used for heating costing $7,035 and an unpaid heating oil bill for $3,360.
At 31 March 2015, the heating oil in hand was $5,628, and there was an outstanding heating oil bill of $4,032.
Payment made for heating oil during the year ended 31 March 2015 totalled $24,690.
Based on these figures, what amount should appear in the company's statement of profit or loss and other comprehensive income for heating oil for the year?
Suggested solutions
Oil Account
| Debit | Credit | ||
| Opening Balance | 7,035 | Adjustment | 1,407 |
| Closing Balance | 5,628 |
Payable (Accrual) Account
| Debit | Credit | ||
| - | - | Opening Balance | 3,360 |
| - | - | Adjustment | 672 |
| - | - | Closing Balance | 4,032 |
Heating Oil Expense Account
| Debit | Credit | ||
| Cash Paid | 24,690 | ||
| Adjustment Oil account | 1,407 | ||
| Adjustment Accrual account | 672 | ||
| Total Heating Oil expenses | 26,769 |
To do the same topic again in ACCA F3 Prepayment and Accrual 2
To do another topic in ACCA F3
2015 ACCA F3 Prepayment and Accrual